House Coalition Leads Charge for Rigorous Review of Massive Rail Merger
- Steve Jurrens
- Feb 5
- 2 min read
Northeast Radio SD News – South Dakota - U.S. Representative Dusty Johnson (R-S.D.) is leading a coalition of 47 House colleagues in demanding a “rigorous and comprehensive” federal review of the proposed merger between Union Pacific Railroad (UP) and Norfolk Southern Railway (NS).
In a formal letter sent to the Surface Transportation Board (STB) on February 4, 2026, the lawmakers expressed deep concerns that creating a 55,000-mile transcontinental railroad could stifle competition and drive up costs for American businesses and consumers.
Protecting the Public Interest
The proposed transaction would combine the nation’s largest and fifth-largest railroads, handling nearly half of all U.S. rail freight. Representative Johnson, who represents a state heavily reliant on agricultural exports, warned that further consolidation in an industry that has already shrunk from 30 “Class I” railroads in 1980 to just six today poses a significant risk.
“Competition in the marketplace is healthy. Further limiting the number of competitors on our railways could cause prices to go up, affecting everyone from farmers to shippers to consumers,” said Johnson. “I am inherently skeptical that consolidation in any market leads to better outcomes for customers”.
A High Bar for Approval
The STB has already demonstrated a commitment to a deliberate process, having unanimously rejected the initial UP-NS application on January 16, 2026, as “incomplete”. The Board cited a lack of forward-looking market-share projections and the omission of key contractual schedules as the primary reasons for the delay.
Under strict merger rules adopted in 2001, the burden of proof rests entirely on the railroads to demonstrate that the merger will:
· Enhance competition rather than just preserving it.
· Ensure reliable service for domestic manufacturers and agricultural producers.
· Protect the public interest, particularly against service “meltdowns”.
Impacts on Agriculture and Rural States
Lawmakers across the country—including in states such as South Dakota, Kansas, and Illinois—are hearing from stakeholders who fear losing options. Agricultural groups have raised “red flags” about potential harvest delays and missed export windows if service is degraded under a new, monopoly-like structure.
The STB has given the railroads until February 17, 2026, to indicate if they intend to refile a revised application.
